topic Re: Chase CLD X 3 in Credit Cards

Chase CLD X 3

tcbofade — Tue, 24 Nov 2020 23:42:12 GMT

So, the GOOD news is that they emailed me about it.... the bad news is that Chase CLD'd all three of DW's accounts.

She's got two brand new balance transfers on two of them... which WERE at 68% utilization, but now are BOTH maxed out.

Third card HAD zero balance and a $5k CL, my daughter put a $26 purchase on it, and they CLD'd all three accounts.

We've got 48 hours before one of the statements closes, and we're discussing what to do. We COULD pay them both back down to 68%, but they COULD CLD them again. Currently, I'm thinking that I'll pay them down to 88% BEFORE the statement cuts to reduce Fico damage, and if they CLD her again, we'll know that is not the route to take.

I'll pay off the third one and give the kid a different card to use.

I know that it isn't personal, and it isn't aimed at us, but it sure feels ugly.

According to the letters, DW has balances on too many accounts and too many new accounts. They listed her Equifax score as 720.

Frankly, if they don't want us to use balance transfers, they shouldn't offer them. Both are still "free money" through October and/or November 2021, so I'm in no race to pay them off, but don't want to see DWs Fico8 scores plummet either.

Argh.

Re: Chase CLD X 3

FinStar — Wed, 25 Nov 2020 00:22:37 GMT

Wow sorry to hear about the CLD on DWs accounts 😬

A variety of lenders are placing more scrutiny on how some accounts are being used and handled, including frequent ARs to determine proactive risk assessment decisions. Yes, it can definitely be ugly when it happens. The good news, other than any potential balance chasing scenarios (if at all), is that the accounts remain open vs. closed.

This is typically the downside for a variety of individuals whose profiles become a target in this ever-changing environment, especially when AI risk engines are continually adjusting their risk models. And, we're not out of the woods yet.

Are you or DW planning on any major purchases or financing within the next 12 months? If not, finances over FICOs might be something to keep in mind.

Re: Chase CLD X 3

bizarrocreditworld — Wed, 25 Nov 2020 00:49:30 GMT

@FinStar wrote:
Wow sorry to hear about the CLD on DWs accounts 😬

A variety of lenders are placing more scrutiny on how some accounts are being used and handled, including frequent ARs to determine proactive risk assessment decisions. Yes, it can definitely be ugly when it happens. The good news, other than any potential balance chasing scenarios (if at all), is that the accounts remain open vs. closed.

This is typically the downside for a variety of individuals whose profiles become a target in this ever-changing environment, especially when AI risk engines are continually adjusting their risk models. And, we're not out of the woods yet.

Are you or DW planning on any major purchases or financing within the next 12 months? If not, finances over FICOs might be something to keep in mind.

I'm also sorry to hear about your DW's cards. It's a tough break, but as FinStar said, things are changing constantly and risk models are no exception.

As you said tcbofade, it's not personal, but it still hurts. I think you're doing the right thing to see if they are going to balance chase you or if it was just a CLD.

Re: Chase CLD X 3

AverageJoesCredit — Wed, 25 Nov 2020 00:51:39 GMT

Sorry Taco, hope its just a small bump in the road.

Re: Chase CLD X 3

Remedios — Wed, 25 Nov 2020 03:30:15 GMT

@tcbofade I'm sorry. That's quite unfortunate.

Re: Chase CLD X 3

tcbofade — Wed, 25 Nov 2020 09:38:58 GMT

@FinStar wrote:

Are you or DW planning on any major purchases or financing within the next 12 months? If not, finances over FICOs might be something to keep in mind.

I am, she's not.

None of her Chase accounts show on MY credit report, so as you (and SHE) mentioned, finances over FICOs and they can sit there maxed out.

We discussed it for a while, and I think that I'll pay them down a bit...and we'll see what happens.

Re: Chase CLD X 3

ChargedUp — Wed, 25 Nov 2020 10:48:04 GMT

Sorry about the CLD's Taco... It's crazy to offer a BT and then perform AA for using it.

Re: Chase CLD X 3

Brian_Earl_Spilner — Wed, 25 Nov 2020 12:16:34 GMT

Wow, sorry to hear that. And you're so close to your goal date.

Re: Chase CLD X 3

simplynoir — Wed, 25 Nov 2020 12:50:11 GMT

@tcbofade Sorry that happened to the DW

Re: Chase CLD X 3

rostrow416 — Wed, 25 Nov 2020 16:17:58 GMT

You could test the waters and pay 1 down before the statement cuts. If the limit holds, try paying down the other one and wait.

Sucks to hear, but once banks settle down a bit, those limits can be brought back up

Re: Chase CLD X 3

SouthJamaica — Wed, 25 Nov 2020 16:49:35 GMT

@tcbofade wrote:
So, the GOOD news is that they emailed me about it.... the bad news is that Chase CLD'd all three of DW's accounts.

She's got two brand new balance transfers on two of them... which WERE at 68% utilization, but now are BOTH maxed out.

Third card HAD zero balance and a $5k CL, my daughter put a $26 purchase on it, and they CLD'd all three accounts.

We've got 48 hours before one of the statements closes, and we're discussing what to do. We COULD pay them both back down to 68%, but they COULD CLD them again. Currently, I'm thinking that I'll pay them down to 88% BEFORE the statement cuts to reduce Fico damage, and if they CLD her again, we'll know that is not the route to take.

I'll pay off the third one and give the kid a different card to use.

I know that it isn't personal, and it isn't aimed at us, but it sure feels ugly.

According to the letters, DW has balances on too many accounts and too many new accounts. They listed her Equifax score as 720.

Frankly, if they don't want us to use balance transfers, they shouldn't offer them. Both are still "free money" through October and/or November 2021, so I'm in no race to pay them off, but don't want to see DWs Fico8 scores plummet either.

Argh.

Bummer.

I'm convinced that taking advantage of a bank's balance transfer offers is the surest way to incur adverse action. It's ridiculous that they make the offers, and then punish you for accepting them.

Re: Chase CLD X 3

hawkins — Wed, 25 Nov 2020 17:19:16 GMT

I always use and recommend a credit union when doing BTs. They are so easy to work with and are not so risk adverse as major banks like Chase. Even if Chase offered a BT to me on any of my 2 cards with them I would never accept it from them for the very reason your DW got AAd. Sorry op. But like others said they are still open which is a good thing. It means they still want to do business with your DW and most likely will after she pays everything down Chase will probably raise the CL (YMMV) back up. Best of luck to you and your DW. Happy Thanksgiving.

Re: Chase CLD X 3

tcbofade — Wed, 25 Nov 2020 21:01:28 GMT

@SouthJamaica, @ChargedUp , that is EXACTLY how I feel right at the moment.

@Brian_Earl_Spilner, thankfully, these actions do NOT affect MY pending refinance. I will be refinancing the mortgage in my name only, and these three cards are DWs and do NOT show on my credit reports.

@rostrow416 by happy coincidence, that is EXACTLY what I'm doing. One of the cards carrying a balance transfer cuts it's statement tomorrow. I just made a payment to bring it under 88% when it reports, and we'll see if they leave it there or slash it further.

We didn't max the cards out, and I HATE that Chase's actions will cause two of her accounts to report as maxed out. I get it, they CAN, but I'm not impressed.

Re: Chase CLD X 3

gdale6 — Wed, 25 Nov 2020 22:26:38 GMT

@SouthJamaica wrote:
@tcbofade wrote:
So, the GOOD news is that they emailed me about it.... the bad news is that Chase CLD'd all three of DW's accounts.

She's got two brand new balance transfers on two of them... which WERE at 68% utilization, but now are BOTH maxed out.

Third card HAD zero balance and a $5k CL, my daughter put a $26 purchase on it, and they CLD'd all three accounts.

We've got 48 hours before one of the statements closes, and we're discussing what to do. We COULD pay them both back down to 68%, but they COULD CLD them again. Currently, I'm thinking that I'll pay them down to 88% BEFORE the statement cuts to reduce Fico damage, and if they CLD her again, we'll know that is not the route to take.

I'll pay off the third one and give the kid a different card to use.

I know that it isn't personal, and it isn't aimed at us, but it sure feels ugly.

According to the letters, DW has balances on too many accounts and too many new accounts. They listed her Equifax score as 720.

Frankly, if they don't want us to use balance transfers, they shouldn't offer them. Both are still "free money" through October and/or November 2021, so I'm in no race to pay them off, but don't want to see DWs Fico8 scores plummet either.

Argh.

Bummer.

I'm convinced that taking advantage of a bank's balance transfer offers is the surest way to incur adverse action. It's ridiculous that they make the offers, and then punish you for accepting them.

FNBO doesnt use such tactics just the major fools do.

Re: Chase CLD X 3

pizza1 — Wed, 25 Nov 2020 22:28:12 GMT

UGH...that is frustrating for sure, and Im sorry this happened. But it did remind me to go use my Chase Amazon Visa. I haven't used it in 8 months.

Well clearly, there is an audit going on. They just close...

Hut1 — Wed, 25 Nov 2020 22:36:34 GMT

Well clearly, there is an audit going on. They just closed DH's Slate for non-use. I think it had been roughly 1 yr since its last use.

Re: Chase CLD X 3

Anonymous — Wed, 25 Nov 2020 22:43:31 GMT

@SouthJamaica wrote:
I'm convinced that taking advantage of a bank's balance transfer offers is the surest way to incur adverse action. It's ridiculous that they make the offers, and then punish you for accepting them.

I think it depends on a person's UT percentage though, I take BT offers often and don't get hit with CLD's. I keep them low, typically under 28%.

It is abummer though for Chase because in order to get those CL's back you'll need a HP, right.

Re: Well clearly, there is an audit going on. They just close...

Slabenstein — Wed, 25 Nov 2020 22:43:41 GMT

@Hut1 wrote:
Well clearly, there is an audit going on. They just closed DH's Slate for non-use. I think it had been roughly 1 yr since its last use.

I think closure at one year of non-use is typical of Chase.

Re: Chase CLD X 3

SouthJamaica — Wed, 25 Nov 2020 23:21:34 GMT

@Anonymous wrote:
@SouthJamaica wrote:
I'm convinced that taking advantage of a bank's balance transfer offers is the surest way to incur adverse action. It's ridiculous that they make the offers, and then punish you for accepting them.
I think it depends on a person's UT percentage though, I take BT offers often and don't get hit with CLD's. I keep them low, typically under 28%.

It is abummer though for Chase because in order to get those CL's back you'll need a HP, right.

I don't agree, I had 3 adverse action situations with banks, and I never used more than 28% of the limit. In each case I was using some attractive balance transfer propositions.

Re: Chase CLD X 3

K-in-Boston — Thu, 26 Nov 2020 01:07:51 GMT

@Anonymous wrote:
@SouthJamaica wrote:
I'm convinced that taking advantage of a bank's balance transfer offers is the surest way to incur adverse action. It's ridiculous that they make the offers, and then punish you for accepting them.
I think it depends on a person's UT percentage though, I take BT offers often and don't get hit with CLD's. I keep them low, typically under 28%.

It is abummer though for Chase because in order to get those CL's back you'll need a HP, right.

+1. Also the entire portfolio, including trends of total balances (which Chase does monitor; a recon call I did a few years back had them comparing balances on every card on my report from a year prior) is taken into consideration. I have been doing the BT shuffle for a long time as the balances come down. No AA since the fallout from the Great Recession, and of the cards I manage for the household the only AA since then for BTs was from Barclaycard and that really made no sense ("payments too low" - payments were four digits and like 20x the minimums).

Sorry that this happened to you. My guess is it was likely due to the very high utilization on the two cards, possibly combined with any other factors going on with her reports. The good news is that Chase credit lines can and will bounce back once utilization gets back under control.